Don't get caught with no place to stash their loot! Use these 4 tips to set-up a place for all of your baby gift money before the baby is born!
Afterall, it is their money. Save it before you spend it on the never ending baby necessities!
Make a plan, you are their role model!
Make your life easier before "life with a baby" takes over. 4 Tips to set-up baby's finances before birth Savings for a new family baby I am a planner, and I like to make my life as easy as possible. So when my son was born and the monetary gifts started arriving, I had places to put those items. You do not want to be caught off guard when all of those baby gifts start coming your way. After all, it is his money and it adds up quickly.
With the price of a college education today and the thought of what it will be in eighteen years, you need to have a plan to save. The more you can do without thinking about it the better. During these first few months with a newborn there are so many new situations to adjust too, nap/feeding schedules, diaper changes, bedtimes; the list goes on and on. Believe me; it doesn't get easier as they get older so, set-up these four easy tips NOW!
4 Easy Tips:
Tip 1: Open a Savings Account-you can do this before the baby is born and already have a place to put junior's loot. If you go to the bank you are currently using and open a custodial account, that is an account you have access to, you don't need to have a name for the baby yet. Just get the ball rolling and set it up with Baby & your last name.
Tip 2: Get a safety deposit box- a lot of older folks like to give the new baby savings bonds as a birth present. If you don't already have a bank box, you can get a small one for around $15 at your bank. If the bond goes up in smoke, it is gone for good. Keep it protected. That $50 dollar bond isn't worth $50 now but will be in 20 years, when you need it!
Tip 3: Open a 529 account-you can do this through any financial investment house, before the baby is born. It is a good idea to save this way since no one can touch it for a car, etc. when they turn sixteen. Saving for college is so much easier when you start early, and contribute on a regular basis.
Tip 4: A Piggy Bank-is a great visual tool for saving. A baby doesn't understand money/savings yet but, it can be imprinted in their mind positively. That clink-clink sound of coins dropping into the bank will be an early memory.
Summary: This is a just a summary of the situations most of us face and ways we can prepare for them. Take a little time before the baby to set-up some financial systems that they can continue to use into adulthood. Use this pre-baby time to do your research, get organized and plan your strategy. Your little bundle of joy will thank you, okay who am I kidding, they never will thank you! However, your countless family members will be happy that you thought ahead.